The naira appreciated marginally against the US dollar on Monday, closing at N1,320/$ in the Nigerian Foreign Exchange Market (NFEM), even as foreign exchange trading activity dropped sharply to its lowest level in about five months.
Data from the Central Bank of Nigeria (CBN) showed that NFEM turnover fell to N107.07 million on September 7, representing a 78.4 per cent decline from the N495.70 million recorded on the previous trading day.
Despite the steep fall in transaction volume, the naira gained N2.50 against the dollar, improving by 0.19 per cent from Friday’s closing rate of N1,322.50/$.
The currency traded within a relatively narrow band of N1,318.50/$ to N1,322.50/$ during the session, while the weighted average exchange rate stood at N1,320.56/$.
The simple average rate was N1,320.67/$, indicating limited price movement around the day’s closing level.
A total of 119 transactions were recorded during the session, with no interbank deals reported.
The latest turnover figure represents the lowest level of activity in the NFEM since April 2, when transactions amounted to N73.90 million.
The decline in trading volume comes despite a stronger performance by the foreign exchange market in recent weeks. FX spot and derivatives transactions reached $5.06 billion in the week ended August 21, representing a 146.12 per cent increase and the strongest weekly turnover recorded so far in 2026.
The contrasting figures suggest that while broader FX market activity has improved significantly, daily turnover in the official market can still fluctuate sharply.
For now, the naira’s movement to N1,320/$ points to continued relative stability in the official market, although the sharp drop in turnover highlights the need to monitor liquidity and trading activity closely.
